Singapore Airlines (SIA) is set to announce its Q1 FY26 financial results in late July or early August, with expectations of a core net profit ranging between S$400m and S$500m. This projection aligns closely with the previous year’s performance, despite the challenges posed by rising geopolitical tensions in the Middle East, which have led to increased jet fuel prices.
In May 2025, SIA reported a 3.1% year-on-year increase in passenger load and a 4.2% rise in cargo load, both surpassing pre-pandemic levels. The closure of Jetstar Asia, a competitor, presents an opportunity for SIA and its low-cost subsidiary, Scoot, to expand their market share at Changi Airport. This development is expected to support SIA’s medium-term growth outlook.
However, the recent conflict between Israel and Iran has caused a significant spike in Brent crude oil prices, raising concerns about future fuel costs. Despite these challenges, SIA maintains a “Hold” rating with a target share price of S$6.63, reflecting a cautious yet optimistic outlook.
The airline’s strategic moves, including absorbing Jetstar Asia’s market share and staff, are seen as positive steps towards maintaining its competitive edge. As SIA navigates these turbulent times, its focus remains on leveraging opportunities for growth whilst managing the risks associated with fluctuating fuel prices.
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